MaintenanceAllocations

The following system was approved in 2014. It decides the allocation to the houses of the annual amount of maintenance money sent back to CHEA by NASCO Properties from our lease payments to them.

Background

The maintenance money supplied by NASCO Properties (NP) is divided into two pots: minor maintenance and major maintenance. Major maintenance money is generally for larger, more planned projects, and rolls over to your next budget at the end of the year. Minor maintenance money does not roll over and is “lost” (fear not- it stays within the NASCO co-op system :). So a good maintenance allocation proposal should attempt to use minor maintenance money first, then major maintenance, since a failure to use all major maintenance money by the end of the year will not cause of loss of that money to CHEA.
The system described here divides these two pots of money in a detailed way between the houses. 70% of the money is simply divided on the basis of resident member population (i.e. “per head”) with every member of each house receiving an equal allotment. 30% of the money is reserved for emergencies or planned projects later in the budget year. Due to the peculiarities of major vs. minor pots, the system gets a bit detailed. These details are given below.

Exact instructions

Instructions on how to divide the NP money between H separate CHEA co-ops (“Houses”):
“T” is the total amount of money provided by NP.
“M” is the major maintenance portion of T, as specified by NP.
“N” is the minor maintenance portion of T, as specified by NP.

Step 1 : Set aside as much major maintenance as possible for Planned Projects, adding in minor maintenance allocation if needed.

M is assumed to be 30% or more of T, so M can cover all of the Planned Projects stage. Call the portion of M remaining after allocating (removing) 30% of T from it, Mremaining.
Since we didn’t allocate any minor maintenance money yet, all of N remains for the next step. We’ll use the PlannedProjects subscript to show what we’ve set aside from a pot of money for the Planned Projects stage.
MPlannedProjects = 0.3 * T

Mremaining = M - MPlannedProjects

Remember that Planned Projects stage money is allocated for later in the year, and contended for by both houses, through an application process. Thus, it does not get divided yet between the houses; it just gets set aside right now.

Step 2 : Allocate the remaining money “per head” between the houses.

The remaining money to be allocated is now Mremaining + N.
Call the population of resident members of House “h”, Ph.
Call the total CHEA population Pt.
Pt = P1 + P2 + … + Ph
Major maintenance money allocated to house h = Mremaining * (Ph / Pt)
Minor maintenance money allocated to house h = N * (Ph / Pt)

Note that this process describes allocation (as in budgeting) and does not describe the flow of actual money from the bank accounts. This system is just to help decide how much of each pot of money the individual houses are entitled to during a given budget year.

Details- “Per Head” allocation (ignores major/minor distinction)

A portion of the total NP money (described above) is to be divided between the CHEA houses on a per resident member (“per head”) basis, with each resident member receiving the same amount of maintenance allocation assigned to them, regardless of what CHEA property they reside in. Only resident members will be used in this calculation; associate members or residents who are not members will not be considered. The effect of this is to split a portion of the maintenance allocation equally based on resident population of the houses, with more populous houses receiving a larger amount.

Details - “Planned Project” allocation (ignores major/minor distinction)

A portion of the total NP money is to be divided between the CHEA houses for emergencies or according to projects agreed to each budget cycle by the CHEA Maintenance committee. The CHEA Maintenance Committee will consist of the maintenance coordinator from each house as well as the CHEA Treasurer. In cases where this produces an even number of members of the Maintenance Committee, the CHEA board will appoint one of its members to the committee to ensure an odd number of members. Planned Projects will be proposed near the end of each budget cycle if the Planned Project allocation has not already been drained by emergency expenses. Project proposals need clear descriptions and estimates of cost, risks, and duration. The Maintenance Committee will convene by January 15th to begin a discussion of where the greatest need lies and what projects each house has been thinking about. By March 1st the Maintenance Committee will decide what projects to approve for that funding cycle so that any leftover minor maintenance money can be spent before it becomes inaccessible.
Any unallocated NP major maintenance funds for a budget cycle can be split by the “per head” method or saved for a later project at the discretion of the Maintenance Committee, to allow for multi-year project planning.